Investors love their dividends, but in this environment, many companies are cutting their payouts, especially those in heavily affected industries such as travel, airlines, and oil and gas, as well as companies with high levels of debt.
However, two such companies recently reported their first-quarter results this week, with each confirming they would pay their next dividend payment. However, one company withdrew its full-year guidance, and another hinted that the dividend may be reduced or eliminated later in the year.
Nevertheless, both companies currently yield over 10%, meaning they are both screamingly cheap, even if their payouts eventually get cut, and especially in the event of a quicker-than-expected economic recovery.
Continue reading
Source: Motley Fool
(May 9, 2020 - 10:21 AM EDT)
News by QuoteMedia
www.quotemedia.com
